Money game also known as HYIP (High Yield Investment Programs) or Investment Scams are on the rise in Singapore and Malaysia. More and more companies are positioning themselves as alternative investment firms coming to Singapore and Malaysia to "raise funds". The most common ones are using Forex as a front. But there are also some using other instruments like coal mines, gold mines, major projects, property, wine and precious metals.

How they works:

They or their representatives will tell you some truths which is how good the forex market is for making money and but it is also tough as 90% of traders lost money. Then they will tell you other unknown facts like they have developed some crazy trading robots or have some very good traders working under their umbrella and can help you to trade.

To make it more attractive, they will give you a guaranteed high returns every month like 10% to 20% every month. So meaning to say, no matter their traders or robots make or lose, they will have to give the high returns to you. This is the part they are using greed and taking advantage of other people's challenges of not being able to trade profitably.

To grow their "business" faster, they give out very good commission as well. And the commissions are passive. Something like 5% to 30% of whatever the person you refer makes every month. So for example your friend whom you referred into the program makes $1,000 that month (10% of $10,000 fixed monthly returns) , you will get between $50 - $300 as commission monthly.

Personally, I DO NOT encourage anyone who come across such programs to join them as it is a fact that sooner or later, they will close down and all or most of your money is gone. Will you make money from it? Yes, if you are the pioneers or the earlier batches because they need to pay you to make you recruit more people for them. I have seen people making 5-6 figure income from referral commission alone. But whose money do you think they are really getting? It is from their friends or even relatives.

To me, HYIP and Money Game is a Ponzi which means they are using the money of the members who joined later to pay the members who joined earlier.

Again, my advice is DO NOT HYIPs or Money Games

Why It Does Not Make Sense?

Alright, lets give them the benefit of doubt. Assuming they are speaking the truth that they have really developed a robot or have a group of great traders working for them. Then why the hell do they still need money so desperately?

Ok fair enough, we need capital to make more money. But will you be so stupid to borrow your money from a loan shark (illegal moneylender) for 10%-20% interest per month to trade even if you have supposedly found a holy grail? Anyone who has a brain wouldn't do that.

Why I am now referring to illegal moneylenders? Doesn't their business model sounds like borrowing from "investors" and paying them 10-20% monthly guaranteed sounds like borrowing from those illegal moneylenders? And if they can't pay the interest, what happens? They run away..With your money...

Imagine the rates they are giving, 10% per month no matter they win or lose. 10-30% returns to the person who referred you and a few more percent to a few more levels so it helps the networker makes massive passive income. Such program sounds extremely attractive to networks.

However, let's now think from a company point of view. In order to pay such returns and commission every month, that is easily 15% to 20% profits per month. And mind you, 15-20% returns per month just to break-even. And that's excluding company overheads.

Think about this yourself as an individual trader/investor, if you have someone or something who can help you generate such returns, how fast can your money really grow? The short answer is extremely fast! Let's see a simple example:

Imagine if you only have $2,000 and assuming you have the ability to make 20% per month (break-even for HYIPs example above). If you use the logic of compiled interest and just let your money grow:

In 12 months, your $2,000 would have become $17,832.20.

In 24 months, your $2,000 would have become $158,993.69

In 36 months, your $2,000 would have become $1,417,603.75!!!

If you can generate such returns, would you still want to risk and stress yourself to"borrow" money at 10-20% interest per month from your "investors"? I believe any rational person would not even bother or willing to pay 2% per month to their credit card.

So, I hope this post can wake some people up. Why am I so against such companies? That's because I have personally invested in a company like this and I have also seen many people burnt very badly because they sold houses or cars and pump in their lifetime savings just to invest more into the scheme. Some people even attempted to kill themselves. I know it sounded dramatic but it is the truth I hope all these HYIPs and Money games operators will get their retribution.

To sum it up, my conclusion is:

1. Beware of companies or individuals claiming to guarantee monthly profits (especially high returns)
2. Beware of companies or individuals who are not licensed and take your money. Unless the money is in an account under your name and you have full control (only you can withdraw ANYTIME), if not, forget about it.
3. DO NOT JOIN THEM. HYIPs or Money Game

The rate they are coming in is too fast for me to maintain a detailed list for all of them as they open new ones and close down very fast. If you want me to help you analyze such companies, I will be more than happy to do so.